Delaware | 0-12695 | 94-2669985 |
(State of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
6024 Silver Creek Valley Road, San Jose, California 95138 |
(Address of principal executive offices) (Zip Code) |
Emerging growth company o |
Exhibit No. | Description | |
99.1 | Press Release Dated July 30, 2018 |
Dated: | July 30, 2018 | |
INTEGRATED DEVICE TECHNOLOGY, INC. | ||
By: | /S/ BRIAN C. WHITE | |
Brian C. White | ||
Senior Vice President and Chief Financial Officer (duly authorized officer) |
Exhibit No. | Description | |
Press Release Dated July 30, 2018 |
Financial Contact: | Press Contact: | |
Krishna Shankar Head of Investor Relations Phone: (408) 574-6995 E-mail: krishna.shankar@idt.com | Krista Pavlakos IDT Director, Communications Phone: (408) 574-6640 E-mail: krista.pavlakos@idt.com |
• | IDT is extending its leadership in PCI Express solutions with the introduction of two new Gen4 timing families, the IDT® PhiClock™ clock generator family and the enhanced IDT 9Z family of high-performance clock buffers. Both families offer substantial performance upgrades and satisfy upcoming Gen5 PCIe requirements and meet or exceed the most stringent customer performance, power and board space requirements. These latest devices are another example of IDT's long leadership in PCIe timing and are ideal for our customers creating next-generation data center and networking solutions based on PCIe Gen4, including servers, SSDs, NICs, FPGA and GPU-based accelerator cards, and Ethernet and optical modules. |
• | IDT introduced a Synchronous Ethernet timing solution for 4G/5G mobile networks using Marvell's Alaska X family of devices. Synchronous Ethernet (SyncE) timing provides the ability for frequency distribution and synchronization over Ethernet-based packet networks. SyncE helps service providers meet the challenges of increasing bandwidth, coverage and mobile services which require high-accuracy synchronization. The combined IDT timing and -Marvell SyncE PHY layer platform allows customers to build high-performance Ethernet solutions that support the high-accuracy time synchronization required by today's demanding 4G/5G application services. |
• | IDT’s new mm-wave beam forming RF solutions are seeing strong adoption momentum in both the 5G wireless infrastructure market and the satellite communications market and commencement of initial production revenues ahead |
• | IDT announced that its customer Senseonics received FDA approval for its Eversense Continuous Glucose Monitoring (CGM) system for diabetes care. The Eversense System consists of an implantable, fluorescence-based sensor, a smart transmitter worn over the sensor to facilitate data communication, and a mobile app. The system is the first and only CGM system to feature an implantable glucose sensor and provide long-term continuous monitoring for up to three months. An IDT signal processing chip with software and algorithms is the “heart” of the implantable sensor platform that measures glucose levels. |
• | IDT expanded its sensor solutions into the IoT marketplace by releasing the latest SensorShare™ software platform, which enables networked sensors and supports sensor deployments via cloud service providers who can offer “Sensing-as-a-Service”. The latest release of IDT's ZWIR45xx 6LoWPAN sensor hub module comes with this new firmware as a standard royalty-free offering. It offers a compelling alternative to LoRa- and Zigbee-based solutions available in the market today. |
• | IDT launched its new ZMOD™ family of integrated gas sensors that offer best-in-class stability and sensitivity for measuring volatile organic compound (VOC) gases. These sensors are ideal for indoor air quality applications, including smart thermostats, air purifiers, smart HVAC equipment and other "smart home" devices. These sensors possess an ideal mix of features, performance, software programmability for integrating new sensing capabilities, stability and reliability, enabling a new generation of environmental sensor applications ranging from industrial and appliance applications to IoT and smart home devices. |
• | IDT announced that the latest IDT® wireless charging chipset is used in the Sony Mobile Xperia XZ2 smartphone and associated WCH20 wireless charging dock for effortless and convenient charging based on the Wireless Power Consortium (WPC) Qi® charging protocol. Sony Mobile is the latest major smartphone maker to adopt IDT wireless charging for a convenient, reliable, high-speed, wire-like effortless charging experience based on the WPC Qi EPP standard. IDT is the global leader in wireless power solutions for the receivers used in smartphones and other applications, as well as the wireless transmitters used in charging pads and automotive in-car applications. |
• | Revenue for the fiscal first quarter of 2019 was $228.5 million. This compared with $224.6 million reported last quarter, and $196.7 million reported in the same period one year ago. |
• | GAAP net income for the fiscal first quarter of 2019 was $30.7 million, or $0.23 per diluted share versus GAAP net income of $20.7 million or $0.15 per diluted share last quarter, and GAAP net income of $16.7 million or $0.12 per diluted share in the same period one year ago. Fiscal first quarter GAAP results include $10.6 million in acquisition-related and |
• | Non-GAAP net income for the fiscal first quarter of 2019 was $60.1 million or $0.44 per diluted share, compared with non-GAAP net income of $63.4 million or $0.46 per diluted share last quarter, and non-GAAP net income of $45.3 million or $0.33 per diluted share reported in the same period one year ago. |
• | GAAP gross profit for the fiscal first quarter of 2019 was $136.6 million, or 59.8 percent, compared with GAAP gross profit of $127.1 million or 56.6 percent last quarter, and $110.0 million, or 55.9 percent, reported in the same period one year ago. Non-GAAP gross profit for the fiscal first quarter of 2019 was $144.8 million, or 63.4 percent, compared with non-GAAP gross profit of $140.5 million, or 62.6 percent last quarter, and $120.7 million, or 61.4 percent, reported in the same period one year ago. |
• | GAAP R&D expense for the fiscal first quarter of 2019 was $52.2 million, compared with GAAP R&D expense of $55.7 million last quarter, and $48.4 million reported in the same period one year ago. Non-GAAP R&D expense for the fiscal first quarter of 2019 was $44.7 million, compared with non-GAAP R&D expense of $42.2 million last quarter, and $40.3 million in the same period one year ago. |
• | GAAP SG&A expense for the fiscal first quarter of 2019 was $43.0 million, compared with GAAP SG&A expense of $41.5 million last quarter, and $41.9 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal first quarter of 2019 was $32.5 million, compared with non-GAAP SG&A expense of $30.9 million last quarter, and $30.8 million in the same period one year ago. |
• | Amortization of acquisition-related intangibles, which include acquired intangibles such as purchased technology, patents, customer relationships, trademarks, backlog and non-compete agreements. |
• | Acquisition-related costs such as legal, accounting and other professional or consulting fees directly related to an acquisition. |
• | Fair market value adjustment to acquired inventory sold. |
• | Severance costs directly related to a restructuring action. |
• | Facility closure costs consist of ongoing costs associated with the exit of our leased and owned facilities. |
• | Gain on divestiture consists of gains recognized upon the strategic sale of business units. |
• | Assets impairments including accelerated depreciation and amortization of certain assets no longer in use or related to discontinued product lines. |
• | Stock based compensation expense. |
• | Compensation expense (benefit) - deferred compensation, consists of gains and losses on marketable equity securities related to our deferred compensation arrangements. |
• | Non-cash interest expense, consists of amortization of issuance cost and accretion of discount related to the convertible notes. |
• | Loss (gain) on deferred compensation plan securities represents the changes in the fair value of the assets in a separate trust that is invested in corporate owned life insurance under our deferred compensation plan. |
• | Unrealized foreign currency gains and losses resulting from remeasurement of certain non-functional currency account balances. |
• | Tax effects of non-GAAP adjustments: The non-GAAP tax calculation eliminates the effects of certain non-GAAP financial measures in order to provide investors with improved modeling accuracy and consistency across financial reporting periods. The Company forecasts its annual non-GAAP tax rate and makes adjustments for significant events including stock based compensation, acquisition and restructuring related items, and material tax law changes in the major tax jurisdictions in which the company operates. |
• | Diluted weighted average shares non-GAAP adjustment, for purposes of calculating non-GAAP diluted net income per share, the GAAP diluted weighted average shares outstanding is adjusted to exclude the benefits of stock compensation |
INTEGRATED DEVICE TECHNOLOGY, INC. | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited) | ||||||||||||
(In thousands, except per share data) | ||||||||||||
Three Months Ended | ||||||||||||
July 1, 2018 | April 1, 2018 | July 2, 2017 | ||||||||||
Revenues | $ | 228,516 | $ | 224,578 | $ | 196,713 | ||||||
Cost of revenues | 91,909 | 97,478 | 86,675 | |||||||||
Gross profit | 136,607 | 127,100 | 110,038 | |||||||||
Operating expenses: | ||||||||||||
Research and development | 52,234 | 55,694 | 48,449 | |||||||||
Selling, general and administrative | 42,995 | 41,532 | 41,942 | |||||||||
Total operating expenses | 95,229 | 97,226 | 90,391 | |||||||||
Operating income | 41,378 | 29,874 | 19,647 | |||||||||
Other-than-temporary impairment loss on investment | (2,000 | ) | — | — | ||||||||
Interest and other expense, net | (5,514 | ) | (4,875 | ) | (3,915 | ) | ||||||
Income before income taxes | 33,864 | 24,999 | 15,732 | |||||||||
Benefit from (provision for) income taxes | (3,144 | ) | (4,288 | ) | 982 | |||||||
Net income | $ | 30,720 | $ | 20,711 | $ | 16,714 | ||||||
Basic net income per share | $ | 0.24 | $ | 0.16 | $ | 0.13 | ||||||
Diluted net income per share | $ | 0.23 | $ | 0.15 | $ | 0.12 | ||||||
Weighted average shares: | ||||||||||||
Basic | 129,560 | 131,341 | 133,302 | |||||||||
Diluted | 132,806 | 135,016 | 136,642 |
INTEGRATED DEVICE TECHNOLOGY, INC. | |||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (a) | |||||||||||
(Unaudited) | |||||||||||
(In thousands, except per share data) | |||||||||||
Three Months Ended | |||||||||||
July 1, 2018 | April 1, 2018 | July 2, 2017 | |||||||||
GAAP net income | $ | 30,720 | $ | 20,711 | $ | 16,714 | |||||
GAAP diluted net income per share | $ | 0.23 | $ | 0.15 | $ | 0.12 | |||||
Acquisition-related: | |||||||||||
Amortization of acquisition-related intangibles | 9,334 | 9,326 | 8,876 | ||||||||
Acquisition-related costs | — | — | 2,225 | ||||||||
Amortization of fair market value adjustment to inventory | 790 | 753 | 4,081 | ||||||||
Restructuring-related: | |||||||||||
Severance costs | 367 | 4,953 | 653 | ||||||||
Facility closure costs | 121 | 299 | — | ||||||||
Assets impairment and other | — | 9,862 | 1,965 | ||||||||
Other: | |||||||||||
Stock-based compensation expense | 15,063 | 12,436 | 11,820 | ||||||||
Non-cash interest expense | 3,955 | 3,792 | 3,892 | ||||||||
Asset impairment and other | — | (184 | ) | — | |||||||
Other-than-temporary impairment loss on investment | 2,000 | — | — | ||||||||
Certain unrealized foreign exchange loss (gain) | 1,311 | (794 | ) | (1,675 | ) | ||||||
Compensation expense (benefit) - deferred compensation plan | 576 | (128 | ) | 412 | |||||||
Loss (gain) on deferred compensation plan securities | (564 | ) | 158 | (360 | ) | ||||||
Non-GAAP tax adjustments | (3,538 | ) | 2,183 | (3,341 | ) | ||||||
Non-GAAP net income | $ | 60,135 | $ | 63,367 | $ | 45,262 | |||||
GAAP weighted average shares - diluted | 132,806 | 135,016 | 136,642 | ||||||||
Non-GAAP adjustment | 2,378 | 1,773 | 2,319 | ||||||||
Non-GAAP weighted average shares - diluted | 135,184 | 136,789 | 138,961 | ||||||||
Non-GAAP diluted net income per share | $ | 0.44 | $ | 0.46 | $ | 0.33 | |||||
GAAP gross profit | $ | 136,607 | $ | 127,100 | $ | 110,038 | |||||
Acquisition-related: | |||||||||||
Amortization of acquisition-related intangibles | 6,243 | 6,264 | 5,682 | ||||||||
Amortization of fair market value adjustment to inventory | 790 | 753 | 4,081 | ||||||||
Restructuring-related: | |||||||||||
Severance costs | — | 164 | 196 | ||||||||
Assets impairment and other | — | 5,460 | — | ||||||||
Other: | |||||||||||
Compensation expense (benefit) - deferred compensation plan | 135 | (29 | ) | 97 | |||||||
Stock-based compensation expense | 1,028 | 830 | 632 | ||||||||
Non-GAAP gross profit | $ | 144,803 | $ | 140,542 | $ | 120,726 | |||||
GAAP R&D expenses: | $ | 52,234 | $ | 55,694 | $ | 48,449 | |||||
Restructuring-related: | |||||||||||
Severance costs | (110 | ) | (3,733 | ) | (45 | ) | |||||
Assets impairment and other | — | (4,402 | ) | (1,965 | ) |
Other: | |||||||||||
Compensation benefit (expense) - deferred compensation plan | (294 | ) | 66 | (210 | ) | ||||||
Stock-based compensation expense | (7,136 | ) | (5,390 | ) | (5,963 | ) | |||||
Non-GAAP R&D expenses | $ | 44,694 | $ | 42,235 | $ | 40,266 | |||||
GAAP SG&A expenses: | $ | 42,995 | $ | 41,532 | $ | 41,942 | |||||
Acquisition-related: | |||||||||||
Amortization of acquisition-related intangibles | (3,091 | ) | (3,062 | ) | (3,194 | ) | |||||
Acquisition-related costs | — | — | (2,225 | ) | |||||||
Restructuring-related: | |||||||||||
Severance costs | (257 | ) | (1,056 | ) | (412 | ) | |||||
Facility closure costs | (121 | ) | (299 | ) | — | ||||||
Other: | |||||||||||
Compensation benefit (expense) - deferred compensation plan | (147 | ) | 33 | (105 | ) | ||||||
Stock-based compensation expense | (6,899 | ) | (6,216 | ) | (5,225 | ) | |||||
Non-GAAP SG&A expenses | $ | 32,480 | $ | 30,932 | $ | 30,781 | |||||
GAAP interest and other expense, net | $ | (5,514 | ) | $ | (4,875 | ) | $ | (3,915 | ) | ||
Non-cash interest expense | 3,955 | 3,792 | 3,892 | ||||||||
Assets impairment and other | — | (184 | ) | — | |||||||
Loss (gain) on deferred compensation plan securities | (564 | ) | 158 | (360 | ) | ||||||
Certain unrealized foreign exchange loss (gain) | 1,311 | (794 | ) | (1,675 | ) | ||||||
Non-GAAP interest and other expense, net | $ | (812 | ) | $ | (1,903 | ) | $ | (2,058 | ) | ||
GAAP benefit from (provision for) income taxes | $ | (3,144 | ) | $ | (4,288 | ) | $ | 982 | |||
Non-GAAP tax adjustments | 3,538 | (2,183 | ) | 3,341 | |||||||
Non-GAAP provision for income taxes | $ | (6,682 | ) | $ | (2,105 | ) | $ | (2,359 | ) | ||
(a) Refer to the accompanying “Notes to Non-GAAP Financial Measures” for a detailed discussion of Management’s use of non-GAAP financial measures. |
INTEGRATED DEVICE TECHNOLOGY, INC. | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(Unaudited) | |||||||||
July 1, | April 1, | ||||||||
(In thousands) | 2018 | 2018 | |||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 148,071 | $ | 136,873 | |||||
Short-term investments | 198,188 | 222,026 | |||||||
Accounts receivable, net | 122,977 | 108,779 | |||||||
Inventories | 66,177 | 68,702 | |||||||
Prepayments and other current assets | 12,193 | 12,734 | |||||||
Total current assets | 547,606 | 549,114 | |||||||
Property, plant and equipment, net | 86,935 | 86,845 | |||||||
Goodwill | 420,117 | 420,117 | |||||||
Intangible assets, net | 170,899 | 180,781 | |||||||
Deferred tax assets | 9,355 | 11,764 | |||||||
Other assets | 48,809 | 61,910 | |||||||
TOTAL ASSETS | $ | 1,283,721 | $ | 1,310,531 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 33,579 | $ | 41,070 | |||||
Accrued compensation and related expenses | 28,679 | 44,002 | |||||||
Current portion of bank loan | 1,980 | 2,000 | |||||||
Other accrued liabilities | 32,493 | 26,524 | |||||||
Total current liabilities | 96,731 | 113,596 | |||||||
Deferred tax liabilities | 11,516 | 10,221 | |||||||
Long-term income tax payable | 23,573 | 25,034 | |||||||
Convertible notes | 303,166 | 299,551 | |||||||
Long-term bank loan, net | 190,803 | 191,073 | |||||||
Other long-term liabilities | 27,369 | 25,684 | |||||||
Total liabilities | 653,158 | 665,159 | |||||||
Stockholders' equity | 630,563 | 645,372 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,283,721 | $ | 1,310,531 |